Delta bullish ahead of Christmas
ZIMBABWE’S biggest beverage maker says it is aggressively stocking up across its domestic distribution network in order to match robust demand ahead of Christmas Day, this Saturday.
The Zimbabwe Stock Exchange-listed Delta Corporation yesterday said while hurdles stemming out of global supply chain disruptions were exerting pressure on logistics, the blue chip was ready to give domestic consumers a cheer on the big day.
Christmas is one of a few days when the majority of Zimbabwean consumers — under the cosh from a long running economic meltdown — forget their troubles and celebrate with food and drink.
And Delta, the soft drink and beer producer, is the heartthrob of most celebrations.
In an interview with NewsDay Business, Delta Beverages spokesperson Patricia Murambinda said, in a hectic week, the firm’s national network had been fully stocked.
“Delta Beverages has capacity to meet the overall consumer demand anticipated during the forthcoming festive period,” Murambinda said.
“There are, however, some supply gaps on certain brands and packs arising from logistical issues affecting imported inputs. We believe that most of our traders as of this week (December 15, 2021) are stocked up to meet the needs of our consumers. The company continues to do its best to ensure full product supply during the days leading to Christmas and New Year festivities,”Murambinda added.
Murambinda said Delta, which does not participate on the foreign currency auction system, continues to rely on foreign currency generated from trading to cover its import requirements although there were a few problems.
“The challenges relate to longer lead times occasioned by the COVID-19 induced disruptions to international shipping and congestion at ports of entry. There are some global shortages of key packaging materials such as PET resins and tinplate used for making plastic bottles and crowns, respectively,” she added.
She said Delta would not take advantage of the holiday boom to hike prices.
“The company does not adjust prices to take advantage of increased demand during the festive period. We endeavour to generate volumes and achieve economies of scale. Price increases are only passed when justified by increases in cost of production.
“Our contract farming scheme is meeting domestic requirements for both barley and sorghum,” Murambinda told NewsDay Business.
During the period ended September 30, 2021, Delta’s inflation-adjusted revenue increased to $33,6 billion from $19,6 billion during the comparable period in 2020. Profit for the period increased to $6,6 billion during the period, from $4,8 billion during the same period last year. Company secretary Alex Makamure said the firm would be paying out almost $1 billion in dividend for the review period at $75 cents per share.-newsday
